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Sotolo, I must compliment you on that statement and thank you for your past and ongoing support and informative contributions to this forum, I apprcite that not everyone is going to agree about everything all of the time, however you have always been tolerant of differing opinion and extremely polite in every debate.
There is no drivel only information,facts, answers, and the opportunity to debate on current events all of which like it or not affect market sentiment, POG & ultimately the share price of Centamin.
The idea that the fate and value of any investment can be divorced from the worlds past, present or future political and fiscal policies is somewhat naive and it unfortunately why so many other forums fall down due to the self-absorbed, even egotistical and selfish attitudes of many of their contributors.
Thankfully this forum has never been like the majority of the others on the web and hopefully never will be.
During the pandemic it has become very apparent that isolation and lack of meaningful communications with others can have damaging effects on peoples health, so l am sure that we all appreciate benefits of our discussion on Centamin and all manner of other topics this LSE forum.
Keep well, be kind & tolerant to others, Centamin will do the rest!
Best
Tibbs
Like you Gnome disappointed no news regarding bringing in the resources to extraction.
Grateful if someone who is calling in could ask the question. Unfortunately I can't as I am travelling at the moment and have an appointment from 12.30.
Not worried about knowing their specific intent at the upcoming bidding in Egypt as if I was them I would also be keeping quiet and holding my cards close.
Some more detailed plans regarding the West African resource is however long overdue.
Hi Gnome!
I noticed the lack of exploration news as well. However, I'm prepared to cut the new management some slack on this.
I believe new resource estimates for West Africa have already been promised in H2 this year. Hopefully, they will be accompanied by the announcement of what the company intends to do with those resources (sell / develop?).
As for Egypt, we know that the results of the new licence round will be announced on 15/9, and we've had hints from the company that they will be bidding. It's probably for the best that they are not talking about this in public for now.
Evidently, they are also reassessing exploration and development in the existing Sukhari concession as well.
I'll be disappointed if the exploration picture isn't much clearer by the end of the year. But, for now, I'm OK.
Thats an impressive result. A lot to like about the report and the performance, especially in these highlly unusual times. A few things disturbing.
Under cost of sales ...
"5% decrease in total mine production costs from US$174 million to US$164 million, due to stable open pit mining costs, a 13% decrease in underground mining costs, a 13% decrease in processing costs offset by a 25% increase in finance and administration costs due to higher salaries and wages as a result of extended rosters and a 70% increase in refinery and transport costs due to different routes flown all related to COVID-19 as well as a 21% increase in gold ounces sold;"
They appear to be on the game ... v difficult to manage a mining operation efficiently and effectively in these times.
Looking at the growth engine of the company, EXPLORATION is another story
us$15.8m spent, 30% on brownfields and 70% on greenfield
30% in Egypt, 70% in West Africa.
No useful or insightful infromation produced which is enormously disappointing, and of concern. Given the amount of money they have shipped into West Africa, it would be great to tell the investors what the strategy is, and what the action plans are. Even what the resuts over the last 3 months were?
I personally would be spending 70% on brownfields in Egypt, and 30% on greenfields. Especially if you have not got a strategy for how to progress the greenfields.
We have seen mention of 2d seismic surveying, which is not cheap, and no results tabled?
There are opportunities within Egypt for exploration acreage, and not mentioned.
I would advise the board very strongly to get the growth story right in the next 3 months AND COMMUNICATE CLEARLY TO SHAREHOLDERS.
best
the gnome
Sotolo, I get that. I’m talking about the contestant drivel of links about Brixit, Boris and Trump!
Excellent results with a very welcome 50% increase in the dividend.
I can't help thinking that the £ is too high at $1.30, so if that drops back to a more realistic level (considering all our problems), that may add to the SP rise over the next few days.
Unless of course The politics relates to the price of Centamin or gold, the political reaction to Covid, as well as the disease, and the money printing has, giving us 50% dividend rise rather quicker, if more sadly, than I hoped. I expect a no deal Brexit to bring ten pound down again,tho could be wrong, further augmenting our profits. You could say with fairly constant gold production and costs, it is politics nd economics that affect our share price most.
Great results now let’s stay on topic today. No politics please!
With the COMEX futures over $2000 and things looking good here, the opening price must surely be in the 210's.
Divi up 50% to 6 cents which is an amazing 6.25% even at this price. Equivalent to is getting$368 for each ounce mined (remember after emra get 52.5% of profit) As I have posted before Cey deserves a rerating at this gold price and should be around 230p imho
FINANCIAL HIGHLIGHTS[1]
· Adjusted EBITDA was US$255 million, a 57% EBITDA margin, and profit before tax was US$191 million
· Adjusted Group free cash flow generated was US$102 million, after US$114 million was distributed in profit share and royalties to our partner, the Egyptian state
· Net profit attributable to shareholders was US$75 million
· Revenue for the six months ended 30 June 2020 ("H1") was US$449 million from gold sales of 270,529 ounces at an average realised gold price of US$1,657 per ounce
· Operations, supply chain and gold shipments have not been materially impacted by the COVID-19 pandemic. Related costs incurred due to COVID-19 were US$5.7 million, as at 30 June 2020
· Cash cost of production was US$642 per ounce produced, within the annual guidance range of US$630 to US$680 per ounce
· All-in sustaining costs ("AISC") were US$899 per ounce sold, within the annual guidance range of US$870 to US$920 per ounce
· Capital expenditure of US$52 million, below budget and in response to COVID-19 with the deferral of non-essential capital projects, thereby reducing the third-party access on site
· Strong and flexible balance sheet with no-debt or hedging and net cash and liquid assets[2] of US$367 million, as at 30 June 2020, after payment of the first interim dividend of US$69 million on 15 May 2020
· The Board has declared a second interim dividend of 6 US cents per share, equating to 68% of free cash flow generated in H1 (US$69.4 million) to be distributed to shareholders on 11 September 2020
https://otp.tools.investis.com/clients/uk/centamin_plc/rns/regulatory-story.aspx?cid=1756&newsid=1405988
HIGHER GOLD PRICE AND PRODUCTION RESULTED IN A SUBSTANTIAL INCREASE IN FREE CASH FLOW
MARTIN HORGAN, CEO, COMMENTED:
"Over the first half of 2020, Centamin has successfully navigated the challenges presented by the COVID-19 pandemic to deliver a strong operating and financial performance. This operational delivery has enabled us to benefit from the recent strength in the gold price. Combined with our disciplined cost management and unhedged, debt-free balance sheet, Centamin has generated meaningful free cash flow leading to a 50% increase in the interim dividend to 6 US cents per share.
None of this would be possible if it wasn't for the remarkable efforts of our workforce is these unique times, and thank you to our partners, the Egyptian government, for their support in ensuring Sukari is operated safely and responsibly.
Thus far 2020 has seen both changes at the board and management level that will seek to build on the previous success of the Company as we look to shape the plans for the next ten years. The life of asset review for the Sukari Mine is underway and I look forward to updating you in the coming months as we continue to strengthen our management team, assess the business with the aim of building a significant and modern gold company, maximising sustainable returns for all of our stakeholders while focussing on our key strengths that have delivered the strong position we are in today."